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Opinion: DC Default Review – after the storm?

27 Aug 2020
Computer screen showing graph of improvement over time

After the thunderstorms of Q1 2020 when global equity markets fell by over 20%, Q2 has provided sunnier days.  Overseas markets recovered most losses despite continued uncertainty about the pandemic, while UK equity returns - whilst positive in Q2 - were more subdued.  Read here how:

  1. Pension pots of younger members rose on average by 15% over Q2, and for members closer to retirement the average Q2 return was over 9%
  2. Three year returns were around 5% pa for younger members and 4% pa for older members
  3. The rapid change in fortunes, reaffirms our advice in our previous paper for DC investors not to panic and to maintain a long term strategy
Q2 2020 DC Default Review - after the storm...? PDF